Landsec investment and operational update
Landsec continues to build on strong operational and strategic momentum
Since its half year results, Landsec has continued to build on its operational and strategic momentum. It has capitalised further on the ongoing customer demand for prime space across Central London offices and major retail destinations, while also recycling capital out of mature assets into new opportunities offering significantly higher future returns. At the same time, the business has further strengthened its strong capital base.
Unlocking complex opportunities at attractive returns
Landsec has secured 100% ownership of St David's shopping centre, Cardiff, following its purchase of the debt secured against the 50% share of the asset previously owned by intu plc. Comprising separate transactions with two debt holders, the overall purchase price represents a meaningful discount to the £113m September 2022 book value of Landsec's existing 50% share of the centre, a net initial yield of 9.7% and an equivalent yield of 9.7%.
Leasing momentum in St David's has been strong, as the centre benefits from brands' ongoing "flight to prime". Since March 2022, 36 leases have been signed or are in solicitors hands, on average 11% ahead of ERV. In the last 18 months, several brands have relocated to St David's from elsewhere in the city, agreed to open new stores, or upsized their existing stores, including Zara, Ivy Asia, Gaucho and Footasylum. As a result, occupancy increased from 88.1% in March 2021 to 93.1% at the start of this year, with retail sales for the financial year to date 15% above the prior year and in-line with pre-pandemic levels.
https://www.investegate.co.uk/land-sec. ... 00093758U/Ian (No holding).